Which of the following is most likely the most beneficial form of monopoly advantage?
A) better production methods
B) input hoarding
C) decreasing returns to scale
D) government protection

Question

Quizplus · Accepted Answer

Better production methods allow the firm to produce its goods or services more efficiently than its competitors, resulting in lower costs and higher profits. This is a sustainable advantage that is difficult for competitors to replicate or overcome. Input hoarding (B) and decreasing returns to scale (C) may provide some short-term benefits, but they are not as significant or sustainable as better production methods. Government protection (D) may provide some advantages, but it is often controversial, and the benefits are heavily dependent on the political environment.

Which of the Following Is Most Likely the Most Beneficial